As the new features for driver assistance and active safety systems are growing rapidly in vehicles, the simulation within a virtual environment has become a necessity. The current active safety system consists of Electronic Control Units (ECUs) which are coupled to camera and radar sensors. Two methods of implementation exists, integrated sensors with control modules or separation of sensors form control modules. The subsystem integration testing poses new challenges for virtual environment for simulation of active safety features. The comprehensive simulation environment for integration testing consists of chassis controls, powertrain, driver assistance, body and displays controllers. Additional complexity in the system is the serial communication strategy. Multiple communication protocols such as GMLAN, LIN, standard CAN, and Flexray could be present within the same vehicle topology. This paper addresses the challenges for implementing the virtual environment which consist of Electronic Control Units, actual vehicle components, and plant models to simulate the driving environment for testing of driver assistance controllers.